Tuesday, November 30, 2010

Crude oil was lower due to profit taking overnight as it consolidates some of last week's rebound off the 50% retracement level of the August-November rally crossing at 81.14. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If January extends the rally off last week's low, November's high crossing at 89.10 is the next upside target. Closes below the 10 day moving average crossing at 83.00 would temper the near term friendly outlook.

First resistance is the overnight high crossing at 85.90
Second resistance is November's high crossing at 89.10

Crude oil pivot point for Tuesday morning is 85.07

First support is the 10 day moving average crossing at 83.00
Second support is last Tuesday's low crossing at 80.28

Natural gas was higher overnight as it consolidates some of Monday's decline. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near term. Closes below the 20 day moving average crossing at 4.213 are needed to confirm that a short term top has been posted. If January renews this month's rally, the 38% retracement level of the June-October decline crossing at 4.654 is the next upside target.

First resistance is last week's high crossing at 4.515.
Second resistance is the 38% retracement level of the June-October decline crossing at 4.654.

Natural gas pivot point for Tuesday is 4.288

First support is Monday's low crossing at 4.166.
Second support is November's low crossing at 3.853.

Gold was higher overnight as it continues to rebound off the mid-November low. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term.

If December extends the rebound off the mid-November low, the reaction high crossing at 1388.10 is the next upside target. If December renews this month's decline, the reaction low crossing at 1315.60 is the next downside target.

First resistance is last Tuesday's high crossing at 1382.90
Second resistance is this month's high crossing at 1424.30

Gold pivot point for Tuesday morning is 1,362.60

First support is the 25% retracement level of this year's rally crossing at 1330.20
Second support is the reaction low crossing at 1315.60